Hyundai Steel Company announced a major investment of $5.8 billion to develop an electric-arc furnace (EAF)-based integrated steel mill in Louisiana. The Steel Manufacturer’s Association claims that EAF operations produce twice the steel with 75% fewer greenhouse gas emissions than Blast Furnace/BOF production.

Hyundai Steel’s mill will produce steel plates for the automotive industry while focusing on its commitment to sustainable steel production. The company claims that it will create 1,300 jobs in the state.

Sustainable Steel Production

According to Hyundai Steel, the steel mill will provide an annual steel production capacity of 2.7 million metric tons. Commercial production is scheduled to begin in 2029.

This would be the first EAF-based integrated steel mill in the United States to integrate all stages of steel production, from raw materials to finished products. Additionally, the steel mill is expected to produce high-grade automotive steel while reducing carbon emissions compared to traditional blast methods.

“Hyundai Steel’s investment in an EAF-based integrated steel mill in the U.S. is anticipated to stimulate local economic growth, including the creation of new job opportunities,” said Hyundai Steel President and CEO Seo Gang-Hyun. “We plan to supply automotive steel plates not only for Hyundai Motor and Kia’s strategic models but also to expand sales to U.S. automakers in the future.”

If operations at the Louisiana steel mill are successful, the company plans to adopt the EAF-based integrated steel mill system in South Korea. Hyundai Steel plans to build the new plant near the Hyundai Motor Company’s Montgomery, Alabama, and Kia’s West Point, Georgia, manufacturing plants.

The company is also targeting Latin American and European markets. An official from Hyundai Steel added, “By establishing a global production base, we aim to secure a foundation for future growth and solidify our position as a steel company capable of sustainable growth.”